Crypto investment in India — a country where households collectively own more than 25,000 tons of gold — has grown from about US$200 million to nearly US$40 billion in the past year, driven in large measure by demand among young investors, according to a report by Bloomberg.
Fast facts:
- The growth of crypto in India is coming from 18-35-year-olds, the report said. The latest World Gold Council data indicates that Indian adults under the age of 34 have less appetite for gold than older consumers, according to the report.
- CoinGecko data show that the four biggest crypto exchanges in India have seen daily trading volume jump to US$102 million from US$10.6 million a year ago.
- Greater transparency and convenience are among the reasons for investors turning to cryptocurrencies, the report said.
- The surge of enthusiasm for crypto has come despite ongoing regulatory uncertainty in the country. The Reserve Bank of India recently issued a clarification that its 2018 attempt to ban banks from engaging in cryptocurrency-related transactions had been struck down by the Supreme Court more than a year earlier. Lawmakers are currently reviewing the country’s crypto-related regulations.